AIFMD Reporting - Lessons from Experience

AIFMD Reporting –
Lessons from Experience
For AIFMs and AIFs managed or marketed in the EEA
By Ben Cook, June 2015
When the Implementing Regulations of the Alternative
Investment Fund Managers Directive (AIFMD) were issued,
market commentators were quick to point out the challenges
inherent within the reporting requirements covered in Annex
IV. The first annual reporting deadline was in January 2015
and the first quarterly deadline was in April 2015. This article
highlights some of our key learnings from this reporting.
The reporting frequency depends on Assets under
Management (AUM), leverage and whether investments are
made in non listed companies and issuers in order to acquire
control. For Private Equity, this has, in the main, resulted in
annual reporting. That said, many Managers will be coming
up against the next quarterly and mid year deadline of 30
June 2015.
Filing deadlines are tight and providing timely data is
challenging. Many Managers have made the point that it is
not possible to provide confirmed year end information within
30 days. We welcomed public comments from the Financial
Conduct Authority (FCA) regarding “best endeavours” i.e.
providing the most up to date data available and their
pragmatic approach to this area. Whilst all participants are
working towards providing the most accurate, up to date
information possible, the “best endeavours” approach has
brought realism to the process and demonstrates the UK’s
Regulator is listening to industry.
Reporting Information - Questions
The reports contained 340 questions across the Manager
(AIFM) and Fund (AIF) reports; 38 and 302 questions
respectively. Typically, around 120 of the questions are
mandatory for Private Equity AIFMs and AIFs. Many clients
chose to answer the mandatory questions only.
Many of the questions have themselves caused questions. For
example, the stress testing questions (numbers 279 and 280
in the ESMA template) have resulted in detailed answers from
some clients, none from others and ‘not applicable’ from a
few. Is this the outcome the EU was looking for?
Typically, reports were submitted by uploading an XML file to
Regulators’ reporting portals, which some Managers found
challenging. Some Regulators, such as the Danish regulator
required submission by email for this reporting period.
Luxembourg required the use of the eFile platform. Some
Regulators required different versions of XML. On average,
Ipes submitted reports to four Regulators on behalf of each
client using the National Private Placement Regime. If this is
indicative of the market, simplification and harmonisation of
reporting can only be welcomed!
Outsourcing the report production and filing allows AIFMs
to stay focused on managing assets. The AIFM signs off
the report contents prior to submission. The right outsource
partner can collate the data, deal with the reporting process
and provide piece of mind that the submission will meet the
technical requirement of the Regulatory gateways.
Looking ahead
If history has taught us anything, it’s that regulation gets
tighter, not lighter. Looking to the future, it is not beyond
comprehension that the existing optional questions will
become mandatory. It is therefore important that your
outsource provider looks to the future and builds processes to
collect that data.
Many Managers have found the reporting process a
challenging, time consuming exercise. The good news is that,
for many, it is an annual occurrence.
FAQs and web resources overleaf
Find us on
The European Securities and Markets Authority (ESMA)
provided guidance regarding the contents of the reports,
together with templates for completion. Whilst this was
helpful, it didn’t go far enough to provide the level of clarity
the market required, which has led to some fragmentation in
the way responses were made.
AIFMD Reporting –
Lessons from Experience
For AIFMs and AIFs managed or marketed in the EEA
Q. To whom do I need to report?
A. Authorised AIFMs must report to their home Member State
regulator. Registered AIFMs must also report to the regulator
of each jurisdiction in to which they are marketing. This will
necessitate gaining credentials and accessing each of the
relevant regulatory systems in order to submit the file.
Q. What makes a successful submission process?
A.1. Be organised. Agree and communicate the data
collection and sign off process with your chosen partners or
internal team.
2. Optional, mandatory or a mix? Decide on your approach
and stick to it to avoid distractions.
3. Best endeavours? Decide on the date of your data and
give yourself some space to deliver.
4. Test the delivery portal. Make sure you know how to
upload the XML file well in advance of the deadline.
5. Get the right version of XML – it’s different for some
Regulators. Also, make sure you have any additional
requirements factored in, such as secure data card readers
in Sweden, Security Certificates in Belgium and the eFile
technology in Luxembourg.
6. Get comfortable with the questions and the required
answer formats. Opposite are links to useful information
Q. What is XML format?
A. XML stands for Extensible Markup Language and is a
markup language that is used to describe data rather
than display data. It is a system to system data transfer
which allows information from one computer to be sent to
another computer. The language defines a set of rules with
which to annotate a document in order to distinguish the
text from the markups.
Web Resources
Useful links
ESMA’s guidelines on reporting obligations
Information on reporting Annex IV transparency
information - Full-Scope UK AIFMs, Small Authorised
UK AIFMs and Small Registered UK AIFMs
Information on reporting Annex IV transparency
information – Above-Threshold non-EEA AIFMs and
Small non-EEA AIFMs
Reporting transparency information to the FCA
If you would like to find out how Ipes can help with AIFMD
reporting, please get in touch with me.
Ben Cook
Managing Director, Ipes UK
T: +44 20 7798 0929
E: [email protected]
Q. How do I report in XML format?
A. It is possible to convert data into XML format from other
programs, such as Excel, with the help of a developer. The
production and submission processes are discussed in this
Ipes (UK) Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales with No.5648495 at 10 Lower Grosvenor Place, London, SW1W 0EN. VAT Registration No. 882 3503 21. Ipes (Guernsey)
Limited is regulated and licensed by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 as amended. Registered in Guernsey with No.33475 at 1 Royal Plaza, Royal Avenue, St
Peter Port, Guernsey GY1 2HL. Ipes (Jersey) Limited is regulated by the Jersey Financial Services Commission under the Financial Services (Jersey) Law 1998. Registered in Jersey with No.99112 at Third Floor, South Tower, 29/31 Esplanade,
St Helier, Jersey JE4 0ZS. Ipes (Luxembourg) S.A. is licensed by the Ministry of Finance per authorisation no.30/10 and is regulated by the Commission de Surveillance du Secteur Financier to provide various administration services under
the Financial Sector Act of 5 April 1993 (as amended). Registered in Luxembourg RCS with No. B 150156 at 2-8, Avenue Charles de Gaulle, L-1653 Luxembourg.
Ipes has taken all reasonable steps to ensure that information contained herein has been obtained from reliable sources and that this publication is accurate and authoritative in
all respects. However, it is not intended to give legal, tax, accounting or other professional advice. If such advice or other expert assistance is required, the services of a competent
professional should be sought.
Find us on